Opinion: The Fed won't save Trump from a trade war

Odaily Planet Daily News "Dr. Doom" Nouriel Roubini has issued a new warning to Wall Street: Traders should reduce their bets that the Federal Reserve will increase interest rate cuts to ease the impact of the trade war launched by President Trump. Roubini, a famous economist known as "Dr. Doom" for accurately predicting the global financial crisis, believes that the United States will avoid a recession and the Federal Reserve will keep interest rates unchanged for the rest of the year after the tariff-related policy disputes have eased. "This is certainly a head-on collision between the Trump bottom and the Powell bottom," Roubini said, "but I would say that the strike price of the Powell bottom will be lower than the Trump bottom, which means that Powell will wait until Trump blinks first." Federal Reserve Chairman Powell said last week that the economic impact of new tariffs may be far greater than expected, and the central bank must ensure that this does not trigger more serious inflation problems. This week, traders digested the expectation that the Federal Reserve would cut interest rates three to five times, each time by 25 basis points, and some on Wall Street even believed that the central bank might urgently cut interest rates before the next meeting. (Jinshi)